All Articles in subsidies

About that “Apple Could Drop iPad Price” Story

Steve Jobs with iPad on Chair

The Wall Street Journal today posted a comment from an analyst that Apple will remain “nimble” on iPad pricing and could lower it if demand is less than expected.

Um. Yeah. Okay. Did anyone, especially anyone who ever took Intro to Business 101, ever think anything different? Wait… Apple does.

They launched the iPhone 2G at a [...]

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AT&T Offering “Loans” not “Subsidies”?

iphone_3g_s_att_subsidies_vader

Interesting take from the Macalope this week with regards to the ongoing confusion and resentment surrounding current iPhone 3G owners and the price they’ll likely have to pay when upgrading to the iPhone 3G S on AT&T. See, the Macalope believes both sides of the debate have it wrong:

[AT&T fronting part of the [...]

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Would You Sign a 3-Year AT&T Contract to Get iPhone 3G S at $199/$299 Subsidy Pricing?

iphone_3g_s_att_subsidies_vader

No such thing as a free lunch. You don’t get something for nothing. Yesterday we linked to Gizmodo’s response to iPhone 3G owners “whining” about not getting a second bite at the cheap subsidy pricing for the iPhone 3G S.

Bottom line, you got your discount last year in exchange for a 2 year contract. That [...]

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Gizmodo to AT&T Upgrade “Whiners”: You Got Your Subsidy Last Year

iphone_3g_s_att_subsidies_vader

AT&T and other carriers subsidize the upfront cost of the iPhone and other smartphones and make up the difference via guaranteed long term contracts/commitments. That’s their business model, but it means they can’t and won’t give repeated subsidies until you’ve finished the associated contract terms. With many iPhone 3G owners — still under contract — [...]

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AT&T Paying Apple $325 to $425 per iPhone 3G in Subsidies?

iPhone Dr. Evil

The original iPhone 8GB launched with a hefty $599 price tag, though it dropped to $399 a short time later. Though contract details were never disclosed, some pundits and analysts have estimated that AT&T paid Apple up to $15 per month, per customer, in revenue sharing. Over the life of a 24 month contract that [...]

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Apple’s New iPhone Business Models

iPhone Business Model

[Updated following Phone Different Podcast #19, see below!]

Way back in February, Apple’s Chief Operating Officer, Tim Cook said:

“We’re not married to any business model.”

At the time — and it’s scary how long ago it seems already — the iPhone was only available in the US, UK, Germany, and France, with rumors of Ireland and [...]

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